Foreign Travel Credit Card Fees Can Cost Hundreds of Shekels

Travelers planning international trips should be aware of foreign currency transaction fees, which can add hundreds of shekels to vacation expenses. These fees, known as foreign exchange (forex) commissions, are charged every time a credit card is used in a foreign currency. While some cards offer reduced fees, often as low as 1%, these benefits may be limited to specific types of purchases.

For example, spending 10,000 shekels abroad with a card charging a 3% forex fee would result in a 300 shekel charge. In contrast, a card with a 1% fee would only cost 100 shekels for the same spending, a difference of 200 shekels. Standard credit cards without special international benefits can have fees ranging from 2.9% to 3%.

Some credit cards are designed with specific international benefits. For instance, one card offers a 1% forex fee for the first year, with no annual fee, before increasing to 2% and charging a monthly fee from the second year. Another card waives the forex fee entirely for flights, hotels, cruises, and car rentals, but charges 1% for other foreign currency transactions.

Even cards marketed with lower forex fees can have variations. One card has a 2.5% forex fee, while a premium version of the same card offers 1.8%. Another card has a 2.5% forex fee for non-bank transactions. The cumulative difference in fees can be substantial over a vacation, with savings ranging from 50 to 200 shekels on a 10,000 shekel spend, depending on the specific card and its fee structure.